OST-97-2447 | May 5, 1997

 

Notice: Any person wishing to support or oppose this Application must file an answer with the Department by May 20, 1997.

 

Application of :

CONTINENTAL AIRLINES, INC.

for renewal of U.S.-Ecuador Frequencies

 

APPLICATION OF

CONTINENTAL AIRLINES, INC.

FOR RENEWAL OF FREQUENCY ALLOCATION

 

Continental /1 applies to renew its present allocation of fourteen weekly New York/Newark-Ecuador roundtrip frequencies for a two-year period, so Continental can continue to provide effective competition in the New Yorki'Newark-Ecuador market.

 

In support of its application, Continental states as follows:

 

1. Continental currently operates seven weekly frequencies between New York/Newark and Quito via Bogota and seven weekly frequencies between

 

1/ Common names of carriers are used.

 

 

Application of Continental

Page 2

 

New York/Newark and Guayaquil via Panama City. Authority to operate services between New York/Newark and Quito via Bogota was awarded by a Notice of Action Taken dated February 14, 1996. /2 Order 96-7-4 granted Continental an exemption and allocated it seven weekly frequencies for service between New York/Newark and Guayaquil via Panama City, Panama.

 

2. When the Department granted Continental seven additional New York/Newark frequencies, the Department said: "The 14 weekly frequencies will make Continental a more effective competitor vis-a-vis American's East Coast services." (Order 96-7-4 at 5) These benefits will continue with the renewal of Continental's authority. Renewing Continental's fourteen weekly New York/Newark frequencies will assure effective competition between the two U.S. carriers serving the U.S.-Ecuador market. The requested renewal will permit Continental to continue to offer the only daily U.S.-flag single-plane service between New York/Newark and both Guayaquil and Quito. Continental's New York/Newark frequencies are also necessary to compete with the New York (JFK) Ecuador services offered by Ecuatoriana de Aviacion and Saeta.

 

3. Continental will continue to use its Newark-Ecuador frequencies to compete in the important U.S.-Ecuador market and provide both significant intra-gateway competition with flights via Miami and intra-gateway competition with services offered by American and foreign-flag carriers at New York/Newark. The

 

2 These frequencies were awarded for a one year period expiring in February 1977 even though the services using these frequencies were not to start until June of 1996. Counsel inadvertently failed to file in a renewal application by February and regrets any inconvenience caused by this late renewal.

 

 

Application of Continental

Page 3

 

Department recognized when it selected Continental that an award to Continental would "result in the greatest price and service options to the public" and bring "more effective gateway competition in the U.S.-Ecuador market." (Order 96-7-4 at 5) The Department's conclusions still hold true today. /3

 

4. Continental invokes the automatic extension provisions of the Administrative Procedure Act, D U.S.C. § 5a8(c), as implemented by 14 C.F.R. § 377.10, to continue the present temporary allocation of the seven weekly New York/Newark-Guayaquil frequencies for which timely renewal is sought in effect pending final action on this renewal application.

 

3/ Under the U.S.-Ecuador Air Transport Agreement, U.S. combination carriers are limited to 15 weekly frequencies at New York, 10.5 frequencies at Miami, seven weekly frequencies at Los Angeles and 10.5 frequencies at U.S. points other than New York, Miami or Los Angeles. All the Miami frequencies have been allocated to American. and no U.S. carrier is using the seven weekly frequencies available at Los Angeles. Continental currently provides nonstop service between Houston and Guayaquil three days per week and between Houston and Quito via Panama City daily using 10 frequencies available at points other than New York. Miami or Los Angeles.

 

 

Application of Continental

Page 4

 

WHEREFORE. Continental urges the Department to renew its current allocation of fourteen weekly U.S.-Ecuador frequencies for its Newark-Panama City-Guayaquil and Newark-Bogota-Quito services.

 

Respectfully submitted,

CROWELL & MORING LLP

R. Bruce Keiner, Jr.

Steven A. Mirmina

Counsel for Continental Airlines, Inc.